Dubai: Abu Dhabi National Oil Company (ADNOC) has confirmed that it is in formal negotiations with OMV AG regarding the possibility of creating a new combined petrochemicals holding entity. This would involve merging their existing shareholdings in Borouge and Borealis.
Borouge, listed on the Abu Dhabi Securities Exchange (ADX), is currently 54 per cent owned by ADNOC, 36 per cent by Borealis, and the remaining 10 per cent is held by retail and institutional investors. Borealis, on the other hand, is owned 75 pe rcent by OMV, with ADNOC holding the remaining 25 per cent.
As the majority shareholder of Borouge, ADNOC is leading the negotiations, while OMV represents the majority shareholder in Borealis. Any final decision would be subject to the respective governance processes of Borouge and other relevant parties involved.
If the merger proceeds, it would serve as a significant milestone in ADNOC’s ongoing value creation and chemicals growth strategy. However, the transaction is still subject to customary regulatory clearances.
ADNOC will provide further updates on the matter as and when appropriate.